Farm Bill: Been receiving questions on farm bill since before Christmas and just hadn’t taken time to dig into it till this week. Viewing charts is helpful to me, so I’ve added some to jenreesources.com, including one from Robin Reid from K-State which is helpful in understanding how program payments are triggered. If you missed the UNL/FSA farm bill webinar, you can view it at: https://go.unl.edu/x0i9. I am not running simulations this year and don’t recommend that you do it either. The Texas A&M tool is a very good tool, but it will show you a range of probabilities beyond what is realistic for this 2022 decision, barring some type of trainwreck. If you’d like to very easily see for yourself what yields and prices would be necessary to trigger program payments, download the spreadsheet from K-State (and I have an example on my blog): https://www.agmanager.info/ag-policy/2018-farm-bill/tradeoff-between-20222023-arc-and-plc.
Looking at any potential payments for the 2021 crop, projected prices are substantially above the PLC price payments for crops like corn, soybean, wheat, and sorghum grown in Nebraska and would take a 23-33% price reduction to trigger a PLC payment. They’re also substantially above (30-47%) the price and would take a 30-40% county yield loss to trigger ARC-Co. I’m unsure counties with more substantial wind damage from July 9, 2021 wind storm had enough county average yield loss to trigger and ARC-Co payment…and many may have chosen PLC corn last year with the prices at the time anyway.
Decisions for 2022 need to be made by March 15, 2022. For 2022, neither ARC-Co nor PLC would be anticipated to trigger for corn, soybean, wheat, sorghum with current USDA projected prices (which are just numbers at this time). K-State does a nice job of compiling the different sources of 2022/2023 MYA prices and updating them every month here: https://www.agmanager.info/crop-insurance/risk-management-strategies/projections-and-sources-myaprices-arc-and-plc-commodity. Different election decisions (ARC-Co or PLC) can be made for crops in different FSA farm numbers if you’d like to spread risk. Fields with higher yields would be more favorable for your PLC decisions.
A consideration for ARC-Co for corn, soybean, wheat, or milo would be if a county has a lot of non-irrigated acres and one anticipates a drought event in 2022. That may look additionally favorable if the county has the opportunity to split crops into irrigated and non-irrigated decisions.
For soybean, ARC-Co is potentially a little more favorable than PLC, but still most likely won’t trigger a payment. The Soybean MYA price would need to fall below $8.40 to trigger a PLC payment and below $7.84 to trigger an ARC-Co payment with an average yield.
For corn, the MYA price would need to fall below $3.70 to trigger a PLC payment and below $3.18 to trigger an ARC-Co payment with an average yield. Robin Reid with K-State shares, “Strong export demand currently would lead us to believe that PLC payments are unlikely, but again, much uncertainty exists. A farmer could select PLC for the downside price protection or, if they are optimistic that current high prices are here to stay, selecting ARC-County would give them a higher likelihood of payment if county yields are low. In the case of irrigated corn, the likelihood of a yield loss large enough to trigger an ARC-County payment is less, so irrigated base may lend itself more to PLC.” I would note, this is true unless the county has a history of major storm events which traditionally have impacted county average yields, thus making ARC-Co irrigated also an option.
For wheat, PLC has been favorable in the past, but current prices are well above the $5.50 reference price. And for sorghum, PLC has also been favorable in the past with a $3.95 reference price, but again, current prices are well above this.
Bottom line, it’s not anticipated that either PLC nor ARC-Co will trigger program payments for 2022 at this time. I think many farmers would prefer good crops and decent prices. ARC-Co and PLC are tools for risk management and perhaps crop insurance tools will play an even bigger factor in managing risk for this coming year.
On-Farm Research Updates: This week brings my favorite winter meetings, the on-farm research updates on Feb. 25 and 26! I’m passionate about on-farm research as it’s such a practical, inexpensive way to address the research questions growers have! These meetings are more meaningful to me because we get to hear from the farmers themselves who conducted the studies and have more discussion around the topics. They do look different this year with a huge number of people registered virtually vs. in-person. They’re also only a half day and we won’t cover the entire book of studies that were conducted. However, whether you participate virtually or in-person, you will hopefully hear from farmers who conducted on-farm research studies. And, this ‘in-person’ meeting does have people at most local sites also presenting in person. I realize that’s been a point of confusion/frustration as we’ve hosted many zoom meetings as ‘in-person’ watch events where no one presented live at the location. Register for virtual or in-person at: https://go.unl.edu/h83j.
I enjoy hearing from the farmers themselves regarding why they conduct on-farm research. The following YouTube video produced in 2020 highlights area farmers David and Doug Cast of Beaver Crossing and Ken Herz of Lawrence: https://youtu.be/tEy-I43CT0E.
Succession/Estate Planning opportunities are upcoming with a two-part webinar event held Feb. 25 and Mar. 4 at Noon. You can register for those at: https://farm.unl.edu/webinars . There’s also an in-person event at Central City at the Fairgrounds on March 2 at 9:30 a.m. and please RSVP to 308-946-3843 if you’d like to attend.
Tree and Houseplant Webinars: A webinar focused on trees will be Feb. 26 from 9 a.m.-Noon with registration here: Go.unl.edu/ProHort. A houseplant webinar series will occur on Feb. 27 and Mar. 6 from 10-noon with registration here: https://go.unl.edu/houseplants101.
Nitrogen Studies: With spring nitrogen applications around the corner, perhaps you are interested in testing different rates, timing, or inhibitors on your farm? On-farm research is a great option to consider! For some specific precision nitrogen studies (including inhibitors), there are stipends of $1300 available to producers interested in those studies. More info: https://cropwatch.unl.edu/precision-nitrogen-management-farm-research-project. There’s also a partnership with the Upper Big Blue NRD where those interested in conducting nutrient management or cover crop studies may receive $300 in reimbursement costs. If you’re interested in a study like this, please let me know. Next week I’ll share on nitrogen rate and timing results.
Farm Bill: Another tool that may be more visual in helping you make these decisions is the K-State tool at: https://www.agmanager.info/ag-policy/2018-farm-bill/tradeoff-between-20212022-arc-and-plc and I added it to my Farm Bill Decision Tools blog post. It shows you in one chart what happens with potential ARC-CO or PLC triggers by crop depending on what market year average price does or what county yield does. It doesn’t allow you to put in a historical irrigated percentage (HIP), so you need to consider that when selecting ‘irrigated’ or ‘nonirrigated’ in the tool. With it being in one chart, visually, perhaps that would help some of you more? It honestly doesn’t change what I’ve shared with you before, but it seems people are really struggling with this decision, so if you need another way to visualize what to do, it may help. Ultimately, no matter what tool is used, PLC is favored most often in corn, milo, and wheat. Soybeans often could go either way, and likely there may be no payment for soy or corn unless something substantial happens with MYA price or county yields. If you’re really on the fence, it may be helpful/wise to just split decisions between the two programs for different farms? For counties where there’s split irrigated/non-irrigated payments, particularly in areas that are drought-prone, look at what county average yield will trigger ARC-CO for your specific county using the tool. Crop insurance and marketing are ultimately a huge chunk of risk management too. Ultimately, the decision is up to you and no one can predict prices/yields. This information is just shared as a way to hopefully help with your decision making.
I still haven’t heard/seen that 2020 county average yields have been released for me to help anyone with looking at ARC-IC. From the past, we needed around 20% farm level yield loss compared to county average yield for ARC-IC to trigger. So, for those with significant yield loss from wind events, depending on how your farms are grouped, it still may be something to look at. Hopefully county average yields will be available soon.
Background: Ultimately, PLC offers price protection. If your MYA price is less than the reference price ($3.70 for corn; $8.40 for soy; $3.95 for sorghum; $5.50 for wheat), a PLC payment is triggered. ARC-CO is a revenue safety net with price and yield protection, and it takes into account a 5-year Olympic average of prices and yields (for this 2021 decision it looks at 2015-2019).
We’ve had good market prices recently. However, remember ARC-CO is based on a 5-year Olympic average where the high and low are thrown out. This average is based on 2015-2019 (2020 doesn’t come into the picture until the 2022 decision. And, if it’s the high, it gets thrown out then…so it may take a couple years of high prices). And, the reality is that PLC corn price of $3.70 may also not trigger depending on the MYA price. Another consideration for the 2021 election is county yields for ARC-CO payments (looking at years 2015-2019 where the high and low are thrown out).
So as things set today, it’s possible there will be no ARC-CO nor PLC payment for corn or soybean for 2021. Corn tends to favor a PLC decision. Wheat favors PLC. Sorghum traditionally has favored PLC. Soybean could be selected either way, particularly depending on if the county has irrigated/non-irrigated split or not. What can impact this is if we see major yield or price losses from current expectations. Because different weather events hit portions of counties, and because some counties have separate payments for irrigated and non-irrigated acres, it’s important to look at your individual county data to make decisions.
Calculation: One way to look at ARC-CO vs. PLC decision for your county based on crop is to do a simple calculation. Take your 2021 County Guaranteed Revenue for a specific crop and divide that by 2021 County Benchmark Yield for that crop. I’ve provided screenshots from several counties where I’ve helped individuals with farm bill decisions in the past. If your county isn’t listed, you can find your county information here: link to download a USDA excel spreadsheet.
How to Use the Calculation: Essentially, the calculation shows similar triggers for all crops. The ARC-CO trigger for corn is essentially 86% of the Reference Price (except this isn’t the case for soybean when considering individual years where MYA was higher than the Reference Price). Thus, what these numbers currently say is that prices have to drop much lower than the reference prices in order to trigger ARC-CO payments. This makes PLC elections more favorable for all the crops. What can change the ARC-CO trigger would be if there’s a change in the 2021 benchmark yield for that specific county.
|Crop||ARC-CO Trigger (prior to final yields)||PLC Reference Price|
For the screenshots below, I’ve added a column to the right (yellow) where I’ve done the calculation. As you will see, the ARC-CO price trigger is similar for counties for each crop. However, that assumes no fluctuation in yield from the 2021 Benchmark Yield, which should approximate a county trend yield projection. If the actual yield is higher or lower than the benchmark, then the effective trigger price goes down or up. If the trendline yield ends up changing, it will impact the ARC-CO price trigger. Thus, you can adjust by increasing and decreasing the guaranteed yield in the calculation to determine how that could impact your ARC-CO trigger.
Example that can be applied to the other County screenshots (please click on images to enlarge):
- 2021 ARC/PLC recorded webinar
- JenREES ARC-CO Calculation Blog Post
- JenREES 2021 Farm Bill Decision Tools
- 2021 Crop Production Clinic Farm Bill Presentation
- USDA FSA Farm Bill Info.
- USDA County Yield and Revenue Excel Spreadsheet for ARC-CO decision (Download. NE data shown. Unhide cells to see other states.)
Farm Bill: In my desire to share what I’ve learned with you all, I realized I threw too much information into the decision tool blog post, and what I was seeking to share didn’t come across clearly. So, I revised it and you will need to refresh your web browser to view the most updated version.
Ultimately, PLC offers price protection. If your MYA price is less than the reference price ($3.70 for corn; $8.40 for soy; $3.95 for sorghum; $5.50 for wheat), a PLC payment is triggered. ARC-CO is a revenue safety net with price and yield protection, and it takes into account a 5-year Olympic average of prices and yields (for this 2021 decision it looks at 2015-2019).
So as things set today, it’s possible there won’t be either an ARC-CO nor PLC payment for corn or soybean for 2021. Corn tends to favor a PLC election. Wheat favors PLC. Sorghum traditionally has favored PLC. Soybean could be selected either way, particularly depending on if the county has irrigated/non-irrigated split or not. What can impact this is if we see major yield or price losses from current expectations.
What I don’t know yet is if ARC-IC is an option as a result of the significant windstorm in several counties. Once we get the 2020 county yields (most likely in February), I will start looking at that.
Sometimes looking at the probabilities in the decision tools can be confusing, but they can also provide direction if you’re unsure. Thus, why I provide the blog post on how to use the decision tools.
The calculation I shared with you last week may be the easiest thing you can do. So, I put that into a separate blog post and placed screen shots of county by crop in Nebraska so you can see which way things are favored by county. The best way to find all this info. is go to the “Farm Bill” category on my blog: https://jenreesources.com/category/farm-bill-2/ (but only look at the 2021 info.).
Fungus Gnats: Kelly Feehan shares, “If you have small gnats flying around your home or windows, these may be fungusgnats. These nuisance pests are small fly-like insects mainly noticed around houseplants. They cause no harm to people, pets and rarely to plants. Fungus gnats develop in overwatered houseplant soil or poorly drained potting mixes. The larvae, which is a tiny maggot, lives and matures in the potting medium, mainly feeding on fungal or algal growth in overwatered soil. If the potting mix is harboring fungus gnats, cut back on watering frequency so the mix dries out briefly between watering. If needed, repot plants using a well-drained potting mix and containers with drainage holes. Pour excess water out of catch basins after watering. Reduced moisture limits fungal growth, hence fungus gnat larvae food. The upper two inches of the potting mix can also be treated with a labeled houseplant insecticide or insecticidal soap.”
York-Hamilton Cattlemen January Meeting is scheduled for Tuesday, January 26, 2021 at Chances ‘R’ in York. The meeting will open the doors at 6:30 p.m. with meal at 7:00 p.m. Gerald Peterson, Secretary, said this meeting is scheduled in place of the Cattlemen’s Banquet that is usually held this time of year but has been canceled for 2021 on recommendations of area health departments. Kim Siebert, Cattlemen’s President said the evening will feature a presentation from Max McLean of McLean Beef who are in the process of opening a new animal processing and retail meat business in south York. McLean Beef is a longtime cattle feeder farmer in the Benedict area of northern York County. Bill Rhea, President of the Nebraska Cattlemen has been invited to attend the meeting along with Nebraska Cattlemen staff to update the Cattlemen on bills in the Nebraska Legislature. Please RSVP to Gerald Peterson by email at firstname.lastname@example.org or by phone at 308-991-0817 if you plan to attend.
Winter in-person meetings are ‘a go’ for this week for this part of the State. Also, the online pesticide training is available for those who would rather not attend in person. It’s found at: https://web.cvent.com/event/4efa4d41-c770-4a78-99d7-4c4ea75d45ae/summary
Dicamba Training will be conducted by the companies, not UNL. Most have an online training option. Some also have live webinars and in-person meetings. Please see each company’s info:
Bayer (Xtendimax): https://www.cvent.com/c/calendar/7829eb5d-ddef-4c2f-ac2c-a67626018ece
BASF (Engenia): https://www.engeniaherbicide.com/training.html
Syngenta (Tavium): https://www.syngenta-us.com/herbicides/tavium-application-stewardship
Farm Bill: Because the tools are the same as in the past, I’ve updated a blog post (go to the “Farm Bill” category) at jenreesources.com. It shows step by step instructions on how to enter data into the Texas A&M and Illinois decision making tools. Your election this year is for one year only (2021). Some of my data was saved in the Texas A&M tool, so hopefully that’s the case for you individually as well.
After looking at data, here’s some things that may be helpful for consideration. Yes, we’ve had good market prices recently. However, remember ARC-CO is based on a 5-year Olympic average where the high and low are thrown out. This average is based on 2015-2019 (2020 doesn’t come into the picture until the 2022 decision. And, if it’s the high, it gets thrown out then…so it may take a couple years of high prices). And, the reality is that PLC corn price of $3.70 may also not trigger depending on the MYA price.
Another consideration for the 2021 election is county yields for ARC-CO payments (looking at years 2015-2019 where the high and low are thrown out). Because different weather events hit portions of counties, and because some counties have separate payments for irrigated and non-irrigated acres, it’s important to look at your individual county data to make decisions.
If you don’t want to use the decision tools from Texas A&M and Illinois, another option is a simple calculation. On my blog, you can click on a link to download a USDA excel spreadsheet which shows data for figuring ARC-CO triggers and payments. I’ve hidden the cells for the rest of the U.S. and only have Nebraska shown; once downloaded, you can unhide cells if you want to look at other states. For the calculation:
Take your 2021 County Guaranteed Revenue for a specific crop and divide that by 2021 County Benchmark Yield for that crop. For example, York County irrigated corn (irrigated and non-irrigated are combined) shows a 2021 Guaranteed Revenue of $745.35. The 2021 Benchmark Yield (which is an Olympic average yield from 2015-2019) is 234.24. Taking 745.35/234.24=$3.18. Based on these numbers, an ARC-CO payment would not be triggered for corn in York County unless the price went down to $3.18. This is in comparison to PLC in which the trigger is $3.70 for the corn price. This helps with decision making as it leans towards enrolling in PLC for corn. (Again, no guarantee of a payment even with PLC depending on the MYA price). You can also try other figures (ex. trying 240 and 220 bu/ac) if you think the trendline yields may be higher or lower than the current estimate to see other potential ARC Co price triggers. You can use this same calculation for other crops such as soybean, wheat, sorghum, etc. and compare the prices obtained vs. the PLC price for that crop.
The windstorm, fairly widespread in this part of the state, impacted many individual corn yields. I don’t know how that compares to average county yields for 2020. In the past, we had those at some point in February, so it will be interesting to look at this later.
I hadn’t been considering ARC-IC for many situations as it seemed like one had to have 100% prevent plant in 2019 in order for it to trigger. However, I received enough calls from those with hail damage in 2019 to take another look at this.
Purdue University put together a great video that explains ARC-IC and situations where ARC-IC may trigger (two examples listed below). Check it out here: https://youtu.be/AwCMySwjWT4.
If you had the following two situations, it may be beneficial to check out ARC-IC.
- 100% prevent plant for 2019
- Planted entire farm but 2019 yields were below average (20% or more production loss)
NOTE: You will need to have worked through your 2013-2017 yields and also 2019 yields in order to look at ARC-IC. Yields for each crop need to be combined for irrigated and non-irrigated (blended yield) by year. If you have several tracts within a farm number, all the yields for same crop regardless of irrigation practice need to be combined by year. Doing this also allows you to look at any potential to update PLC yields.
The Texas A&M tool doesn’t allow one to look at ARC-IC. I realize I haven’t recommend the Illinois tool. However, they created a second tool (2018 Farm Bill What if Tool) and I apologize as I hadn’t been back to their site since December to see this. The first tool looks at the life of the farm bill and I felt it wasn’t as accurate because this is a 2 year decision instead of 5 year. However, the second tool looks at 2019-2020 and it also is very helpful when considering ARC-IC for single or multiple farms. This blog post will hopefully help you work through the Illinois “What If” tool for considering ARC-IC found at https://farmdoc.illinois.edu/2018-farm-bill.
So what if you had more than one farm in a significant hail damaged area? You can also use this tool to look at multiple farms.
This is very farm and situation dependent. If several farms are within one farm number and one farm had significant loss but the other(s) didn’t, it may not trigger ARC-IC. Same thing for prevent plant acres (if a portion of farm is planted and part is prevent plant, the yield of planted acres may result in too much revenue to trigger ARC-IC).
Situations where ARC-IC tends to trigger best are:
- When there’s one farm within one farm number and that farm either went 100% prevent plant or had a yield loss of 20% or greater for 2019.
- When there’s several farms within one farm number but all had 100% prevent plant and/or significant yield losses in 2019.
Hopefully this is helpful if you’re considering ARC-IC!
Additional Farm Bill Info:
Farm Bill Decision Information
Jenny Rees, Extension Educator York & Seward Counties
*Caveat: This information is shared with the intent to better help growers make farm bill decisions with the best information we have available at this time. There is no guarantee of program payments or how the information below impacts individual farms. Ultimately, the decision is that of the person enrolling and making the program elections for the Farm Bill.
Deadline: Growers should make appointments now at your local Farm Service Agency (FSA) office to complete ARC/PLC election and enrollment forms. The deadline to enroll is Monday, March 16 for the 2019 crop year. You can change your elections up to March 16, 2020. Growers who don’t get enrolled by then will be ineligible to receive ARC or PLC payments for the 2019 crop year.
ARC-CO vs. PLC: This decision is different than the 2014 Farm Bill. We’re in a different price situation (lower prices) and the decision right now for 2018 Farm Bill is a 2-year decision (2019-2020), not the life of the farm bill. Please don’t assume that you should stay enrolled in what you were before.
Working through farm situations from different counties, for corn, PLC tends to be favored more than ARC-CO regardless if the farm had more irrigated or non-irrigated acres. However, soybean tends to favor PLC for a higher irrigated percentage and ARC-CO for farms with little to no irrigation. This does vary by county, so soybean can go either way. The reality is there may not be a soybean payment for either election. Wheat and sorghum tend to favor PLC. You’re only making this decision for two years. You can change your decision for 2021.
ARC-CO Calculation: To understand what potential price it may take for ARC-CO to trigger for any crop in your county, there’s a simple calculation you can do. Ask your local FSA Office for their 2019 Guaranteed Revenues and 2019 Benchmark Yields for each crop (updated February 2020).
Take your county guaranteed revenue for a specific crop and divide that by the county benchmark yield for that crop. For example, for irrigated corn in York County, the 2019 Guaranteed Revenue was $731.07. The 2019 Benchmark Yield (which is an Olympic average yield from 2013-2017) for irrigated corn in York County was 229.75 bu/ac. Taking $731.07/229.75 = $3.18. Based on these numbers a payment would not be triggered for irrigated corn in York County until a price of $3.18 is achieved. This is in comparison to PLC in which the trigger is $3.70 for the corn price (and we’re a lot closer to $3.70 than $3.18). Many of the counties for this area of the State were coming in at $3.18 corn price (irrigated and non-irrigated) in order for ARC-CO to trigger. This helps with decision making as it leans towards enrolling in PLC for corn. You can use this same calculation for other crops such as soybean, wheat, sorghum, etc. and compare the prices obtained vs. the PLC price for that crop.
PLC Yield Update: Your local FSA office can provide a sheet showing what yield is necessary to update your PLC yield for each crop. This can also be determined by taking your current PLC Yield and divide by 0.81. For example, a PLC corn yield of 190/0.81=234.57 bu/ac. Crop Insurance forms are necessary to determine if you can update yields. You will need the yields from 2013-2017. Use the Actual yields (designated with an ‘A’, not APH yields). Take the irrigated and non-irrigated yields for each farm number and divide by total acres to determine the blended yield for each farm number. If the yield is equal to or greater than the yield you need to prove for any of your crops on each farm number, your PLC yield can be updated for that crop. Landlords need to sign the form for updating PLC yields. They do not need to sign the form for election of ARC-CO or PLC if the ground is in cash rent.
Seed Corn Yields: To determine seed corn yields, if no commercial corn is grown in rotation on the farm, use the Plant Base Yield (PBY) not to exceed 120% of the county irrigated corn yield. For example, in 2013, York County Irrigated Corn Yield was 235.92 bu/ac. Multiply this by 120% = 283. 10 bu/ac. Compare this to the PBY for the same year and use the lower of the two numbers. If the farm has commercial corn in addition to seed corn in the rotation, the grower has the choice of applying the commercial corn yield or the equivalent seed corn yield as explained previously.
Decision Support Tools: If you use a decision support tool, I’m not recommending to use the Illinois tool. The Texas A&M tool considers your two-year decision. This blog post (https://go.unl.edu/texasam) has step-by-step screen shots to help if you wish to use the tool.
Historical Irrigated Percentage (HIP) is taken into account for the ARC-CO payments. For those using the Texas A&M decision tool, you will see a box to input HIP. There is an area for HIP on the 156EZ form. Counties that had to split out irrigated vs. non-irrigated acres for certain crops in the 2014 Farm Bill will have a HIP listed. Counties that didn’t have to do this will not have one listed. For those with the HIP listed, it may or may not be accurate depending on if you incorporated/lost irrigated ground in the past 5 years. For purposes of the Texas A&M tool, you can use your best estimate of irrigated vs. non-irrigated percentage. You can also adjust that estimate to see how it impacts potential payments.
Been getting questions on the farm bill. It’s really important that growers make appointments now at your local Farm Service Agency (FSA) office to complete your ARC/PLC election and enrollment forms. Deadline to enroll is Monday, March 16 for the 2019 crop year. The election can be changed up to March 16. Growers who don’t get enrolled by then will be ineligible to receive ARC or PLC payments for the 2019 crop year.
If you use a decision support tool, I’m not recommending to use the Illinois tool as it takes into consideration the life of the farm bill. This is a two-year decision, thus, the potential payment numbers tend to be skewed and makes ARC-CO look more favorable than what it most likely will be. The Texas A&M tool considers a two-year decision and that’s the tool Randy Pryor and I recommend. On my blog, there’s step-by-step screen shots to help if you wish to use the tool. You can find it and previous blog posts at jenreesources.com. In the right-hand column under “categories” select “farm bill”.
Using the tool to work through farm situations from different counties, PLC keeps beating ARC-Co for corn. There’s a separation between the price it could take to trigger ARC-Co (previously around $3.18 for many counties) vs. PLC ($3.70) for corn. I’ve also played with the historical irrigation percentage (HIP). Everytime I’ve changed the HIP % for corn (0, 25, 50, 75, 100), it doesn’t switch the potential payment decision from PLC to ARC-Co. However, when I look at soybean, it’s tended to favor PLC for a higher irrigated percentage and ARC-Co for farms with little to no irrigation. This does vary by county, so soybean can go either way. If you’re really undecided, check this for yourself. You’re only making this decision for 2 years and there may not be a soybean payment for either election. Ultimately elections are your decision and the tools and info hopefully help as we can’t predict what prices will do.
Pesticide, Dicamba, Chemigation Trainings: I’ve also received questions regarding pesticide, dicamba, and chemigation trainings. If you haven’t received a postcard from NDA to pay the $25 bill within 14-17 days after training, please call the Extension Office in the county where you took the training; they can follow-up with NDA. The postcard will have a link to pay the $25 fee online. For those who don’t like paying online, you can also send a $25 check to NDA and include the postcard. For those who attended my training when I ran out of materials, I now have more so you are welcome to stop at the York Co. Extension Office and get the study guide and weed guide.
If you attend a face-to-face dicamba training through Extension or Ag Industry, please bring your pesticide applicator card as a pesticide applicator number is needed for registration. If you are a new applicator this year, you will write “pending” on the registration form. There is no charge for dicamba training, and the same training can be completed online at: https://pested.unl.edu/dicamba. Watching it at home as a group doesn’t work well because only one applicator number is entered to watch the training; there’s no way to add additional ones. Each person would have to be on his/her own device watching the training. Allow one week for your name to be added to NDA’s dicamba certified applicators on their site at: https://nda.nebraska.gov/pesticide/dicamba.html. Download the excel spreadsheet under ‘dicamba applicator training’ and make sure your name is listed. Then print the spreadsheet and keep it for your records.
For those recertifying for chemigation, you are allowed to watch the modules and take the test at home this year at: https://water.unl.edu/article/agricultural-irrigation/chemigation. This is only for recertifications. Initial certifications can watch the modules from home but still need to take the test at an Extension office. Anyone seeking initial or recertification is also welcome to attend face to face training.
Thanks to Randy Pryor, Extension Educator Emeritus, for reviewing this article. Also, appreciate the growers who shared data and Farm Service Agency (FSA) personnel from several counties who answered my questions. Here’s more farm bill information.
PLC Yield: A few weeks ago, I mentioned you can obtain a sheet from your local FSA Office which shows PLC yields and necessary yield in order to increase PLC yield. If you don’t have that sheet, you can use your 156EZ form. Take your PLC yield and divide by 0.81 to get the yield necessary to increase your PLC yield. For example, a PLC corn yield of 190/0.81= 234.57 bu/ac. Your 2013-2017 RMA actual yields would need to show you’ve achieved at least 234.57 bu/ac in order to increase your PLC yield.
Seed Corn Yields: For seed corn yields, if the farm has commercial corn in addition to seed corn in rotation, the commercial corn yield will be applied to the seed corn. If no commercial corn is grown in rotation on the farm, use the Plant Base Yield (PBY) not to exceed 120% of the county irrigated corn yield. For example, in 2013, York County Irrigated Corn Yield was 235.92 bu/ac. Multiply this by 120% = 283.10 bu/ac. Compare this to the PBY for the same year and use the lower of the two numbers.
Historical Irrigated Percentage (HIP) is taken into account for ARC-CO payments. For those of you who are using the Texas A&M decision tool, you will see a box to input HIP. As you look at your 156EZ form, you will see an area for HIP. Counties that had to split out irrigated vs. non-irrigated acres for certain crops in the 2014 Farm Bill will have a HIP listed. Counties that didn’t have to do this will not have one listed. For those with HIP listed, it may or may not be accurate depending on if you incorporated/lost irrigated ground in the past 5 years. For purposes of the Texas A&M tool, you can use your best estimate of irrigated vs. non-irrigated percentage.
ARC-CO Calculation: Regardless if you’d like to try the Texas A&M tool or not, you can also get an idea of the price in which ARC-CO would trigger a 2019 payment by doing a simple calculation. Take your county guaranteed revenue and divide that by the county benchmark yield. For example, for irrigated corn in York County, the 2019 Guaranteed Revenue is $731.07. The 2019 Benchmark Yield (which is an Olympic average yield from 2013-2017) for irrigated corn in York County is 229.75 bu/ac. Taking $731.07/229.75= $3.18. What this means is that based on these numbers, if the York County RMA Yield comes in at 229.75 bu/ac, which is a trend adjusted yield, a payment would not be triggered for ARC-CO for irrigated corn in York County until a $3.18 corn price is achieved. This is in comparison to PLC in which the trigger is $3.70 for the corn price. Many of the counties in which I’ve done this calculation for irrigated corn have around a $3.18 trigger price for ARC-CO currently. That alone tells you a lot regarding decision making. If the trendline yield remains close to current one, it leans towards enrolling in PLC for irrigated corn, but it is a two year decision. You can also try other figures (ex. trying 235 and 220 bu/ac) if you think the trendline yields may be higher or lower than the current estimate to see other potential ARC Co price triggers.
Randy Pryor shared a spreadsheet with me from USDA that had all the yearly yields, trend yields, and revenue guarantees for each county and each crop in Nebraska to date. I’ve placed tables with these numbers on my blog at jenreesources.com for the counties in which I helped growers for the 2014 Farm Bill. You can also ask your FSA Office if they can provide this information for you.
FSA Meetings: If you missed the Farm Bill meetings and would like to better understand the differences between the 2014 and 2018 Farm Bills, please contact your local FSA Office. Many of them are having small meetings certain days of the week but can’t share which way you should enroll.
Texas A&M Decision Aid: Randy Pryor and I are recommending that if you use a decision aid, that you use the Texas A&M one. For those of you I worked with during the 2014 farm bill, I have your username and password if you no longer do. You can also reset it by calling their help line. I’ve assembled screen shots at https://go.unl.edu/texasam that walk you step by step through inputting data into the tool. If you have questions, please let me know. Hoping this is helpful!
*End News Column. County tables below.
Additional Farm Bill Info:
York County Corn Grower Plot Results and Banquet: The results of the York County Corn Growers plot can be found at: https://jenreesources.com/2019/11/03/2019-york-county-corn-grower-plot-results/. Special thanks to Ron and Brad Makovicka for their dedication and work in hosting! Also appreciate all the seed companies who participate! The York County Corn Grower’s Banquet will be held Tuesday, November 26 at Chances ‘R in York with social at 6:30 p.m. and dinner at 7:00 p.m. Tickets are $10 and may be purchased from any York Co. Corn Grower director or at the York Co. Extension Office.
Fall Nitrogen Application: With November here, a reminder to check soil temperatures before applying anhydrous ammonia to crop fields. Soil microbial activity and the rate of conversion of ammonium to nitrate is very low when the soil temperature is less than 50oF. Thus, apply fertilizer-N (and manure) when the soil temperature at the 4” soil depth is below 50°F and trending cooler. Daily and weekly soil temperatures (taken 4” below the surface of bare soil) can be found at: https://cropwatch.unl.edu/soiltemperature.
Extension Soil Fertility and Nutrient Management Specialists Javed Iqbal, Charlie Wortmann, Bijesh Maharjan, and Laila Puntel shared additional considerations for fall Nitrogen application in this week’s CropWatch: Apply anhydrous ammonia rather than other N fertilizers; Limit fall application of N to silt loam, silty clay loam, and finer textured soils; Use nitrification inhibitors to slow the conversion of ammonium to nitrate, especially on sand-dominant soils; Avoid fall application on wet soils; and Consider applying a lower base rate of nitrogen in the fall and plan on applying the rest at planting, or as a side-dress application.
On-Farm Research Protocols are available for anyone interested in fall vs. spring nitrogen management studies, inhibitor studies, or other potential on-farm research studies by contacting your local Extension educator. For growers within the UBBNRD interested in on-farm research studies that have a water quality focus, you may be eligible for additional support through the UBBNRD. In some instances it may cover district staff and equipment use; in others, it may cover a portion of the costs of lab analysis of soil, plant tissue, or water samples. If you’re a grower interested in this type of study, please contact the UBBNRD or your local Extension Educator to talk through your study idea and for additional information.
Farm Bill Meetings: Joint Nebraska Extension and Nebraska Farm Service Agency (FSA) producer education meetings are scheduled at 28 locations across the state from late November to mid-December in advance of the coming ARC/PLC enrollment deadlines in early 2020. The meetings are free and open to the public. Advance registration is encouraged for planning purposes for materials and facilities. Attendees can register for any of the meetings conveniently on the web at farmbill.unl.edu or by calling or visiting their county FSA or Extension office. The educational programs will feature information and insights from FSA specialists and Extension experts, as well as other relevant information from local agencies.
Nearest locations for this area of the State include: Nov. 25. Community Center, Red Cloud (1-4 p.m.); Dec. 3 ENREC near Mead (9-Noon); Dec. 4 Ag Park in Columbus (9-Noon); Dec. 5 College Park in Grand Island (1-4 p.m.); Dec. 5. Opera House, Bruning (1:30-4:30 p.m.); Dec. 6 Fairgrounds Cornerstone Building York (9-Noon); Dec. 16. Extension Office Lincoln (9-Noon); Dec. 17 Fairgrounds 4-H Bldg. Beatrice (9-Noon); Dec. 17 Fairgrounds in Kearney (1-4 p.m.).